Hi ASF,
Read the rest of my posting and see if we differ. My argument is that the Telkom basic model is wrong and because of that they are implementing capping. In their model it is essential because there is no such thing as unlimited bandwidth.
I agree with you on the rest completely and if Telkom was willing to spend money on equipment or maybe just to understand the equipment they already have, they can offer such a service. ADSL service is based on statistical rather than discreet number due to the fact that packets are random entities. Leased lines uses discreet portions of bandwidth and their consumption of network bandwidth in the operators network is fixed.
There may be users that won't like packetloss and this mechanism must be explained in a SLA. In Frame Relay for instance you may kick of lower priority users to maintain the throughput for high priority ones. The problem is that Telkom hasn't got any SLA, no guarantee and no measure of fairness for all. That is why they only have the capping mechanism to introduce some kind of control. A SLA will obviously differ between users and there is no point to ask somebody with a lesser service to subsidize somebody else.
An overcongested network will give everybody a bad service and if Telkom is there already they have to take drastic measures. If they are running idle, it won't make sense at all. The point is, if congestion is caused by some users being on all the time and using the maximum available bandwidth and others get a mediocre service when they occasionally access it, there is definitely no fairness. Whether by SLA or by capping, some control must exist.